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Dow Hits New Record Intraday-High Ahead Of Fed & Scottish Uncertainty

Tyler Durden's picture




 

Overnight weakness in Asia and Europe was shrugged off. The Dow hit all-time record highs (first since July) and the S&P broke back above 2,000 following headlines proclaiming a "stealth QE" from China (which actually hit the news during the Asia session) and chatter from WSJ's Hilsenrath that The Fed will leave the words "considerable period" in the statement tomorrow. Early weakness in stocks was ripped 25 points higher in the S&P on the back of a 97% correlation to AUDJPY (China-driven), the USD dumped to unch for the week (worst day since May), commodities all took off higher (led by Copper and Oil), and Treasuries flip-flopped to end steeper (5Y -5bps, 30Y +1bp on the week). "Most Shorted" stocks squeezed higher. HY credit compressed with stocks rally but decoupled later in the day. The Nasdaq and Russell (nearing death-cross) remain red on the week despite today's exuberance. VIX was smashed back under 13 (which makes perfect sense because there is no uncertainty this week at all). S&P closed below 2,000 and The Dow "off the highs".

 

AUDJPY was all that matters today...

 

Stocks ramped from the moment the China headline hit...

 

With S&P tagging 2,000...

 

As "Most Shorted" was squeezed into lunch...

 

But it was not enough to get Nasdaq and Russell green on the week... (note, just like yesterday, we had a sudden vertical ramp early in the morning before all the China/Fed exuberance)

 

With The Russell 2000 nearing the death-cross (50DMA crossing below the 200DMA)...

 

US financials push on to new cycle highs (and the meme is that all is clear) except that financial credit is notably divergent and flashing orange for now (just as it did in 2007)

 

HY credit tracked stocks as they ramped higher but decoupled in the last hour...

 

VIX also decoupled but to the upside...

 

Treasuries were mixed with 5Y outperforming... but steepened on the week...

 

As The Dollar tumbled on the China news... USD's worst day since May

 

And commodities surged... but PMs gave some back...

 

With Brent-WTI collapsing to around $4 as WTI outperforms...

 

We leave it to Diapason's Sean Corrigan to put a different perspective (as the chart below suggests last time China did this)...

...on today's exuberance about China QE...

The commodity move today is more a testament to short term oversold condition and proximity of various key technical supports than anything real...

 

Note that news about this came out before Europe and US were out of bed (and pretty much while Shanghai equities were getting hosed - go figure!)

 

 

...but our markets only reacted to it when Goldman helpfully 'explained' its supposed importance to the rest of us dullards....

 

Even if this WERE 'equivalent' to a 50bps RRR cut, that might only be a domestic offset to the base money destroying FX-drain which has been underway for the last couple of months and so would only imply neutrality, not renewed stimulus.

Charts: Bloomberg

 

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Tue, 09/16/2014 - 16:10 | 5223930 Dungholio
Dungholio's picture

Fuck these markets

Tue, 09/16/2014 - 16:20 | 5223973 slovester
slovester's picture

The equity casino is no more a "market" than a mannequin is a living human being.

Tue, 09/16/2014 - 16:22 | 5223982 Dungholio
Dungholio's picture

I stand corrected...  I've been drinking..

Tue, 09/16/2014 - 16:33 | 5224012 J S Bach
J S Bach's picture

Counterfeit QE money's gotta go somewhere.  It sure as hell isn't being pumped into the working economy... so the banks and Wall Street casinos are the only logical places for it to go.  It's not rocket science.

Tue, 09/16/2014 - 16:51 | 5224093 cart00ner
cart00ner's picture

TP for the Japs?

Tue, 09/16/2014 - 17:59 | 5224357 yogibear
yogibear's picture

The Federal Reserve keeps printing and pumping up stocks. No limit on how high it can go.

Once the US dollar blows up it will change everything.

When Japan blows up we should be able to see our future.

Tue, 09/16/2014 - 17:26 | 5224236 crazybob369
crazybob369's picture

Except mannequins have more brains than most of the idiots playing these rigged "markets".

Tue, 09/16/2014 - 19:17 | 5224560 bid the soldier...
bid the soldiers shoot's picture

I love these old comments from the late 70's

Tue, 09/16/2014 - 16:57 | 5224123 FuzzyDunlop21
FuzzyDunlop21's picture

MONEY FOR NOTHING

Tue, 09/16/2014 - 16:12 | 5223938 Kaiser Sousa
Kaiser Sousa's picture

tic fucking tock anglo-european MoneyChanger scum...

"China will launch its international gold exchange 11 days ahead of schedule, sources said on Tuesday, racing ahead in the scramble to set up an Asian bullion benchmark as rival Singapore is forced to delay its gold contract due to technical issues. Asia, home to the world's top two gold buyers - China and India, has been clamouring to gain pricing power over the metal and challenge the dominance of London and New York in trading.

The state-run Shanghai Gold Exchange (SGE) will launch the global gold bourse in the Shanghai free-trade zone on Thursday, two sources familiar with the matter told Reuters. The SGE had initially planned the launch for Sept. 29. The change was made based on the availability of some government officials to participate in the launch event, one of the sources said, adding that all 11 physical gold contracts will begin trading on Thursday.

The ability to bring forward the launch, which will mark the first time foreign players will be allowed to participate directly in China's physical gold market - the biggest in the world, shows the country's preparedness with the exchange that it is hoping will become the centre of Asian gold trading.

The response has been strong, with the bourse exceeding expectations in signing up trading members, Reuters reported earlier. Meanwhile, Singapore has delayed the launch of its gold contract to October, two other sources said. The 25 kg contract was set to be launched on the Singapore Exchange this month. The delay was due to some technical issues in setting up the trading system, the sources said.

Officials at the Singapore Exchange and SGE were not immediately available for comment. CME Group will launch a physically deliverable contract in Hong Kong later this year, while Dubai is also preparing to launch a contract. Thailand is also considering setting up a spot gold exchange."

Tue, 09/16/2014 - 17:13 | 5224184 papaswamp
papaswamp's picture

Now that will be interesting indeed.

Tue, 09/16/2014 - 16:19 | 5223967 q99x2
q99x2's picture

YeeeeeeHaaaaaaa its WWIII combined with the plagues of Revelations.

BTFATH M'Fers.

Tue, 09/16/2014 - 16:37 | 5224029 Dungholio
Dungholio's picture

sounds bullish to me

Tue, 09/16/2014 - 16:22 | 5223984 taketheredpill
taketheredpill's picture

 

 

Re Scottish referendum, has the UK made a good-faith offer to supply Diebold machines yet?

Tue, 09/16/2014 - 16:22 | 5223986 Goldilocks
Tue, 09/16/2014 - 16:45 | 5224061 chubbyjjfong
chubbyjjfong's picture

Otara Millionaires Club.. Very poignant name in these crazy times given that Otara is about as poor a suburb as you can get .. He ended up poorer than before he wrote the song, got taken to the cleaners by life.. He unfortunately died recently, RIP Pauly Fuemana!

Tue, 09/16/2014 - 16:56 | 5224121 disabledvet
disabledvet's picture

Apropos then as well. "I take my hat off to the new Revolution take a bow to the new Constitution smile and think of all the changes all all around. pick up my guitar and play. Just like yesterday. And I get on me knees and pray.

We don't get fooled again."

I don't want to call it tragic that there really has been no economic recovery (just ask any politician) with this raging bull...but it sure is odd.

Just ask Detroit...

Tue, 09/16/2014 - 19:01 | 5224522 bid the soldier...
bid the soldiers shoot's picture

We don't get fooled again.

Anybody who believes that is already fooled.  :o)

Tue, 09/16/2014 - 16:30 | 5223987 ebworthen
ebworthen's picture

The debt pitcher bullpen is busy! 

Draghi threw some public debt curves and struck out a retiree, a saver, and a rookie FX trader; 1-2-3.

China came to the mound and is throwing knuckleballs.

Is Abe daubing some Vaseline onto his cap?

Is Yellen warming up her slider?

Central Banker rally!

Tue, 09/16/2014 - 16:28 | 5224004 starman
starman's picture

Damn this should get real interesting!

Tue, 09/16/2014 - 16:33 | 5224014 Kaiser Sousa
Kaiser Sousa's picture

hope u all enjoy yet another example of excellent CNBS whoring for the bankers and wall st. sociopaths....

http://video.cnbc.com/gallery/?video=3000310869

Tue, 09/16/2014 - 16:55 | 5224109 IridiumRebel
IridiumRebel's picture

I'd like to shit in that cunt's martini......

"That's no olive......"

Tue, 09/16/2014 - 16:42 | 5224046 Tsar Pointless
Tsar Pointless's picture

Bullshit>charts.

Tue, 09/16/2014 - 16:59 | 5224131 disabledvet
disabledvet's picture

New York never sleeps...but it should.

This thing needs a rest.

Never will happen of course. "Some folks are just hard wired this way."

Tue, 09/16/2014 - 17:04 | 5224150 nakki
nakki's picture

Dow isn't the only thing hitting all-time highs. At the local kwik-e-mart today getting gas and the wife says she want some beef jerky. Well they have 3 brands. Brand 1 $5.99 for 3 oz. bag. Brand 2 $8.29 3.5 oz. Brand 3 $9.49 3.15 oz. I almost shit. From $32 to $47.50 a pound. Unbelievable!!! Maybe I'm old and since i haven't eaten jerky in 10 years, really haven't noticed the prices, but $ 47.50 for a pound of jerky? Needless to say wifey didn't get no jerky.

Tue, 09/16/2014 - 17:31 | 5224252 Dead Canary
Dead Canary's picture

As a result of Scottish independence, Great Britain will now be referred to as:
  "Not so Great Britain but still better that France."
And will join other notables such as:
Domino's:   "Yea it's cheap ass pizza but it's better that eatin corn flakes."
Also:
Big Rosie:   "That bitch is kind of ugly but I'd still fuck her."

So, stiff upper lip NSGBBSBTF. We feel your pain.

Tue, 09/16/2014 - 17:56 | 5224344 paul steinert
paul steinert's picture

Bravo, D.C.

Tue, 09/16/2014 - 17:58 | 5224348 sidiji
sidiji's picture

enjoying your tears...

Tue, 09/16/2014 - 18:14 | 5224395 Catalonia
Catalonia's picture

Severe political turmoil in Catalonia next week. Keep an eye on IBEX35 (particularly banks) and spanish bonds.

Tue, 09/16/2014 - 18:35 | 5224458 Keltner Channel Surf
Keltner Channel Surf's picture

Fuck

Tue, 09/16/2014 - 19:22 | 5224572 bid the soldier...
bid the soldiers shoot's picture

Uncertainty is the mother's milk of all-time highs.

Tue, 09/16/2014 - 21:15 | 5224906 Arnold
Arnold's picture

In all our mental health discussions, the word Idiot  is most lacking.

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